As an international free trade port, Hong Kong's low tax rates and simple tax system naturally attract many to invest in immigration to the city. In March of this year, the new Capital Investment Entrant Scheme officially opened for applications. Applicants must invest a minimum of HKD 30 million into government-designated investment products, known as "permissible investment assets," to be granted residency.
However, if you don’t have HKD 30 million in liquid assets, are there more flexible ways to immigrate to Hong Kong through investment? The following explains this in detail.
What is the New Capital Investment Entrant Scheme?
The "New Capital Investment Entrant Scheme" allows eligible individuals to immigrate to Hong Kong through financial asset investments. By investing HKD 30 million, eligible individuals can obtain the opportunity to relocate to Hong Kong and, after seven consecutive years of residency, apply for permanent residency.
The benefits of this scheme include the fact that investors do not need to worry about starting a business, facing market challenges, or managing operations. Instead, they can simply invest in financial assets, meeting the requirements while avoiding the risks and challenges of entrepreneurship.
Investors can choose from a variety of financial assets based on personal preferences and market conditions, with investments managed by professional institutions, offering greater flexibility. Investing and residing in Hong Kong as an international financial center not only provides investment returns but also allows investors and their families to enjoy Hong Kong’s quality education, healthcare services, and low tax advantages.
However, if you seek greater flexibility in capital utilization or have less than HKD 10 million, can you still consider immigrating to Hong Kong through investment? At Anlex Consultants, we have successfully assisted various clients in immigrating to Hong Kong and obtaining residency with less capital through tailored solutions.
What is the Investment as Entrepreneurs Scheme? (企業家來港投資計劃)
The "Investment as Entrepreneurs Scheme" is a visa program introduced by the Hong Kong government to attract overseas entrepreneurs and innovative enterprises to develop their businesses in Hong Kong. The scheme aims to encourage businesses that are innovative, technologically advanced, and have potential, thereby promoting economic diversification and innovation in Hong Kong.
In the past, Anlex Consultants successfully helped clients obtain residency through the "Investment as Entrepreneurs Scheme" by investing approximately HKD 4-6 million. This involved establishing a company in Hong Kong, such as starting a new company, acquiring shares in an existing company, establishing a branch, or setting up a trade department for an existing overseas business.
After residing in Hong Kong for seven years through this method, eligible individuals successfully obtained permanent residency. This approach offers greater flexibility compared to the HKD 30 million investment required under the Capital Investment Entrant Scheme. Although there is no strict minimum investment amount required for this scheme, based on past experience, we recommend investing at least HKD 4-6 million.
Application Details for the Investment as Entrepreneurs Scheme:
Eligibility Entrepreneur Status: Applicants must demonstrate that their business in Hong Kong will contribute to the local economy, such as creating local employment opportunities or introducing new technology or skills.
Business Nature: Businesses that align with or complement Hong Kong's advantageous industries, such as trade and logistics, tourism, financial services, and professional and commercial support services or high-tech industries, will be given priority. The business must meet one of the following criteria:
Innovation: The business should be innovative and technologically advanced, contributing to Hong Kong's economic and technological development.
Economic Benefits: The business should have the potential to create employment opportunities and promote economic growth in Hong Kong.
Sustainability: The business should have a clear development plan and a sustainable operating model.
Points to Note:
Business Plan: Applicants must submit a detailed business plan outlining the innovation, feasibility, and potential economic benefits of their business.
Source of Funds: Applicants must prove that they have sufficient funds to support their business operations in Hong Kong, and the source of funds must be legal and credible.
What is the Difference Between the Investment as Entrepreneurs Scheme and the New Capital Investment Entrant Scheme?
New Capital Investment Entrant Scheme | Investment as Entrepreneurs Scheme | |
Capital Threshold: | Requires a minimum investment of HKD 30 million, making it more suitable for high-net-worth individuals. | More flexible investment amount, typically around HKD 4-6 million. Particularly suitable for entrepreneurs or senior executives. |
Investment Flexibility: | Allows investment in financial assets or real estate, ideal for investors with stable assets. | Although there is no fixed capital threshold, applicants must demonstrate sufficient funds to support business operations, making it suitable for businesses of various sizes. |
Residency Requirements: | No strict requirements. | Must establish Hong Kong as the primary place of residence. |
Risk: | Higher risk (investment in financial markets or real estate markets carries inherent risks), requiring careful selection of investments. | Control is in your hands, managing your own business. The business must operate successfully and continue to develop in Hong Kong, which can pose risks for some startups. |
Capital Requirements: | Large investment amount, making it harder to mobilize funds. | Smaller investment amount, making it easier to mobilize funds. |
Which Plan is More Suitable for Me?
Each plan has its merits, and the choice depends largely on the applicant's background, financial situation, and goals. At Anlex Consultants, we assess each individual's circumstances to provide tailored advice.
The decision on which plan to choose should be based on your personal situation. High-net-worth individuals might prefer the New Capital Investment Entrant Scheme, where there's no need to start a business. You can avoid the hassle of managing and operating a company by simply investing in financial assets to obtain Hong Kong residency.
On the other hand, entrepreneurs with innovative businesses might find the Investment as Entrepreneurs Scheme more suitable, as it offers flexibility in capital allocation. However, it's important to note that if you choose to relocate to Hong Kong under the Investment as Entrepreneurs Scheme, you'll need to invest more time in your business and take on greater operational responsibilities.
Hong Kong's Business Environment
Hong Kong, as an international free trade port, boasts low tax rates and a simple tax system, attracting numerous international companies and investors. Additionally, Hong Kong's highly open market allows international businesses to easily access other markets in the Asia-Pacific region, making it a crucial hub for East-West trade. The Hong Kong government also actively promotes innovation and technology development, offering various support measures and incentive policies, such as the Innovation and Technology Fund and tax deductions for research and development, in line with policies to attract top talent. If you have any further questions or would like to learn more, feel free to contact us, and one of our consultants will be happy to assist you.
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